Shiba Inu Defies Market Volatility – Is a Bull Run Ahead?

• SHIB’s burn rate surged 284%, removing 12.5M tokens and reducing the total supply to 589T.
• SHIB holds key support at $0.00001785, with RSI at 37.25, signaling oversold levels.
• Short liquidations dominate SHIB’s market, hinting at potential upside momentum.

Shiba Inu ($SHIB) stands strong while other meme coins suffer steep value declines. SHIB held onto its value better than other assets, with less than a 15% loss in January, and successfully maintained its primary support levels. 

The token develops a bullish W-pattern while resting close to critical Fibonacci support points. SHIB at press time trades at $0.00001887 with a 4.03% gain during the previous 24-hour period. Does the present stability signal SHIB’s upcoming rally strength for 2025?

Price Action Analysis – Will SHIB Hold Its Ground?

SHIB tested its support level at $0.00001785, which coincides with a historically critical demand zone. A slight rebound has been seen as buyers defend this level. However, the next important resistance is at $0.000019, a level that all investors should watch closely. A decisive break above this could trigger a run toward the 50% Fibonacci retracement level at $0.00002345. However, SHIB might retest support if it fails to sustain momentum.

Technical Indicators – RSI and MACD Suggest a Turning Point

Indicators are pointing to a reversal of SHIB. The Relative Strength Index (RSI) stands at 37.25, which is below 50, signaling an oversold. Rebounds have historically taken place when RSI reaches this level, which implies that SHIB could be due for a rally.

On the other hand, the MACD continues in the negative area but begins displaying first indications of a possible bullish crossover. Crossing the MACD line above the signal line may indicate that bullish momentum is picking up. However, given the size of the buying volume, the recovery may be delayed if demand doesn’t pick up as much.

Are Liquidations Favoring a SHIB Rally?

Liquidation trends provide further insights. According to the latest SHIB liquidation data, more short positions have been wiped out, which shows that traders who were betting against SHIB had to close their positions. Short liquidations historically cause price spikes as market makers push prices higher. If this pattern continues, SHIB could be headed for key resistance zones.

Shiba Inu Burn Rate Surges 280% – A Bullish Catalyst?

The Shiba Inu burn rate jumped up 284% on January 30 as it eliminated 12.5 million SHIB tokens from active supply. The Shibburn data shows the burn rate has decreased the total Shiba Inu tokens to 589.25 trillion units making the token naturally deflationary. Furthermore, it has burned nearly 44.25 million, an increase of 1.96% in the last seven days.

Related: Shiba Inu Burn Rate Falls 87% as Whale Buys 257.5B SHIB

Final Verdict – Can SHIB Sustain Its Strength?

On the price chart, SHIB is likely to bounce back as it holds the Fibonacci support level, rising RSI, and improving liquidations. The demand is also bolstered by the recent increase in burn rate and the community developments within the Shiba Inu ecosystem. Yet, a price confirmation above $0.00002345 is needed for a bullish break. SHIB remaining above its vital support boundaries signals a potential for large market movements by 2025.

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